the "cultural value" side of things - a new approach to value
DESCRIPTION
Value needs a new definition and a new approach. The cultural value is the most important side of any product. Often it is neglected.TRANSCRIPT
MANUEL TELES FERNANDES| 2014
VALUE. The “cultural value” side of
things.
MANUEL TELES FERNANDES| 2014
• Understanding value • Defining value • Finding a value construct model • Unpredictability as a major risk to value development and sustainability
MANUEL TELES FERNANDES| 2014
WHAT DO THESE PRODUCTS HAVE IN COMMON?
Use value, or value as utility, is the purpose that justifies the existence/production of a product (good or service). This value is subjected to quantification, therefore tangible.
Note: Tangible value can be transacted in the form of exchange or barter, and it always implies the giving of something away in exchange to something else in return)
MANUEL TELES FERNANDES| 2014
WHAT DO These PRODUCTS HAVE also IN COMMON?
They can be subjected to exchange or barter– They have economic value, or value as exchange.
Economic value is the result of any commoditization process of a “thing” with use value (Kopytoff, 1986), expressed by some kind of quantification in both (economic value and use value), therefore tangible by nature.
50c. 2 €. 20 €. 5 €.
MANUEL TELES FERNANDES| 2014
Cultural value, or value as (collective) meaning and sign, is the result of a collective attitude towards a given thing or event, manifested as behaviour, commonly shared by a group of people. It has an esteem dimension, therefore considered as intangible Note: Intangible value, due to its nature, is not subject to transaction in any form, but it can be transferred from one recipient to another, without loss of possession.
BUT, WHAT DO These PRODUCTS HAVE IN COMMON as well?
MANUEL TELES FERNANDES| 2014
CULTURAL VALUE across the border
MANUEL TELES FERNANDES| 2014
CULTURAL VALUE at the root base
MANUEL TELES FERNANDES| 2014
Pure CULTURAL VALUE (only meaning and sign)
MANUEL TELES FERNANDES| 2014
But, have we all the same esteem for the same product?
Perception value, or value as (individual) experience, is the result of an individual experience of a thing of event. Because it is related to esteem, it is considered intangible.
Note: Intangible value, due to its nature, is not subject to transaction in any form, but it is transferred from one recipient to another, without any loss of ownership.
MANUEL TELES FERNANDES| 2014
Concluding, WE HAVE DIFFERENT TYPES OF VALUE
Value, in the singular: 1- use value – value as utility; 2- economic value – value as exchange; 3- cultural value – value as meaning and sign; and 4- perception value – value as experience.
Values, in the plural: 5- religious values – values as belief system; 6- behavioural values – values as moral and ethics; (Despite the influence of those “values” in human society and economy, they are
not part of the subject of this presentation).
Jensen (2005)
MANUEL TELES FERNANDES| 2014
WE NEED A GENERAL DEFINITION OF VALUE
Value is the absolute criteria used in any decision making process, based on the relationship between expected benefits versus potential sacrifice to be made.
Therefore, Value is the relationship between the output(s) and/or outcome(s) [expected benefits] provided by a thing or event, to an individual person or group of people, and the effort [potential sacrifice] consumed to acquire, use or make it happen.
MANUEL TELES FERNANDES| 2014
And we need SUB-DEFINITIONS OF VALUE (1/2)
Value creation is the first time process of transformation of inputs into outputs.
Value generation is any time process of transformation of inputs into outputs based on a past value creation event.
Value adding is any time process of aggregation of one type of value to another, (i.e.: intangible to tangible).
Value improvement is any time process of changing for better an existing ratio between inputs and outputs.
MANUEL TELES FERNANDES| 2014
AND WE NEED SUB-DEFINITIONS OF VALUE (2/2)
Value accumulation is any time process of retaining (created, generated, added, improved) value, in any form.
Value consumption is any time process of using value, through a process of consumption that destroys it, needed to keep a certain status quo.
Value destruction is any time process of eliminating existing value, by purpose or by accident, being the output of lesser or no value.
MANUEL TELES FERNANDES| 2014
WE ALSO NEED TO FIND A VALUE CONSTRUCT MODEL
Complex
Simple
Tangible Intangible Value form
Value materializa7
on
Technology/ Produc0on
R&D/Crea0on-‐Conceptualiza0on
Culture/ Construc0on Distribu0on/
U0liza0on
(Fernandes, 2012)
Technological Innova0onn:
Cultural Innova0on:
MANUEL TELES FERNANDES| 2014
Unpredictability, risk and sustainability
The question placed in this communication is:
“Can a product (good or service) that mainly encompass cultural value, survive profound
changes in the social and economic fields, both with deep influence on an existing culture”?
MANUEL TELES FERNANDES| 2014
CULTURAL VALUE now a days: Meaning and sign
Prestige! Competitiveness
Class Robustness
Utility
MANUEL TELES FERNANDES| 2014
CULTURAL VALUE AT THE MOST EXTREME LEVEL
Only the cultural environment can determine the relational value.
MANUEL TELES FERNANDES| 2014
Unpredictability, risk and sustainability
Cultural Value strives in isolated groups of people with economic capacity.
Cultural Value comes into danger when group attitudes change and when economic
capacity vanishes.
Empirical observation and my own entrepreneurial experience (a beauty clinic for
the middle class women) proves this right!
MANUEL TELES FERNANDES| 2014
Unpredictability, risk and sustainability
But, cultural value may not exist even if one tries harder.
Safrane
And, this is the message: if you do not understand cultural value, do not play the game!
MANUEL TELES FERNANDES| 2014
More on value
In order to understand how value behaves and impacts product and business strategy and
innovation, download the following free applications, and use the models for your product assessment and
scenarios creation, from: www.telesfernandes.net
Basic DynamicMAP Assessment
MANUEL TELES FERNANDES| 2014
More on value
Bibliography: - "A Holistic and Cultural view of Value", AMAE - Advances in Management & Applied Economics Journal", vol.2, n.1, pp. 55-107 (2012).
- "Value Construct towards Innovation", IJIMT - International Journal of Innovation, Management and Technology, vol. 3, no. 1, pp. 10-19, (2012).
- “Model of Value Based Innovation", CBR - Chinese Business Review, Vol.10, N.10, pp.869-879 (2011).
- "Business Strategic Model", IJIMT - International Journal of Innovation, Management and Technology, vol.2, n.4, pp.301-308 (2011)
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